Loses long legal battle with Ukrainian state-owned group CNGG.
Regal Petroleum has been forced to shut down its Ukrainian gas production due to a long-running legal dispute with a government body over its license, the Financial Times reported.
The row concerns a former joint venture between Regal and CNGG, a state-owned group. CNGG wanted to remain a partner at the end of their venture but Regal bought out the group and secured licenses in 2004 on its own. Last year CNGG made a legal challenge against the settlement and the licenses.
Rex Gaisford, chief executive of the UK-based oil and gas group, yesterday said that Regal's latest court defeat in Ukraine, on January 31, had led to a halt in gas production at its two adjacent license areas in the Dneiper-Donets basin.
